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How to accrue an expense

Here's the rule. If a company incurred, used, or consumed all or part of an expense, that expense or part of it should be properly recognized even if it has not yet been paid. If such has not been recognized, then an adjusting entry is necessary.

Accrued expense refers to an expense that the company has not paid yet but it has already incurred.

At the end of period, accountants should make sure that they are properly recorded in the books of the company as expense, with a corresponding payable.
Dr Expense account
Cr Payable account

Pro-Forma Entry

The pro-forma adjusting entry to record an accrued expense is:

mm dd Expense account* x,xxx.xx
Liability account** x,xxx.xx

*Appropriate expense account (such as Utilities Expense, Rent Expense, Interest Expense, etc.)
**Appropriate liability (Utilities Payable, Rent Payable, Interest Payable, Accounts Payable, etc.)

For Example

For the month of December 2020, Gray Electronic Repair Services used a total of $1,800 worth of electricity and water. The company received the bills on January 10, 2021. When should the expense be recorded, December 2020 or January 2021?

Answer – in December 2020. According to the accrual concept of accounting, expenses are recognized when incurred regardless of when paid. The amount above pertains to utilities used in December. Therefore, if no entry was made for it in December then an adjusting entry is necessary.

Dec 31 Utilities Expense 1,800.00
Utilities Payable 1,800.00

In the adjusting entry above, Utilities Expense is debited to recognize the expense and Utilities Payable to record a liability since the amount is yet to be paid.

Here are some more examples.

More Examples: Adjusting Entries for Accrued Expense

Example 1: VIRON Company entered into a rental agreement to use the premises of DON's building. The agreement states that VIRON will pay monthly rentals of $1,500. The lease started on December 1, 2020. On December 31 of the same year, the rent for the month has not yet been paid and no record for rent expense was made.

In this case, VIRON Company already incurred (consumed/used) the expense. Even if it has not yet been paid, it should be recorded as an expense. The necessary adjusting entry would be:

Dec 31 Rent Expense 1,500.00
Rent Payable 1,500.00

Example 2: VIRON Company borrowed $6,000 at 12% interest on August 1, 2020. The amount will be paid after 1 year. At the end of December, the end of the accounting period, no entry was entered in the journal to take up the interest.

Let's analyze the above transaction.

VIRON will be paying $6,000 principal plus $720 interest after a year. The $720 interest covers 1 year. At the end of December, a part of that is already incurred, i.e. $720 x 5/12 or $300. That pertains to interest for 5 months, from August 1 to December 31. The adjusting entry would be:

Dec 31 Interest Expense 300.00
Interest Payable 300.00

Expenses are recognized when incurred regardless of when paid. What you need to remember here is this: when it has been consumed or used and no entry was made to record the expense, then there is a need for an adjusting entry.

Accrued expenses are expenses a company accounts for when they happen, as opposed to when they are actually invoiced or paid for. An accrual method allows a company’s financial statements, such as the balance sheet and income statement, to be more accurate.

Here’s What We’ll Cover:

NOTE: FreshBooks Support team members are not certified income tax or accounting professionals and cannot provide advice in these areas, outside of supporting questions about FreshBooks. If you need income tax advice please contact an accountant in your area.

What Is an Accrued Expense?

Accrued expenses are expenses a company needs to account for, but for which no invoices have been received and no payments have been made.

Here are some common examples of expenses that can be accrued:

    on loan(s)
  • Goods received
  • Services received
  • Wages for employees
  • Taxes
  • Commissions
  • Utilities
  • Rent

What Are Accrued Expenses on a Balance Sheet?

Accrued expenses are reported on a company’s balance sheet. A balance sheet shows what a company owns (its “assets”) and owes (its “liabilities”) as of a particular date, along with its shareholders’ equity.

Accrued expenses would be recorded under the section “Liabilities”. It would look something like this:

Balance Sheet “Liabilities” excerpt:

Current Liabilities:
Wages payable: $21,000
Accounts payable: $46,000
Accrued expenses: $19,000
Taxes payable: $14,000

Total Current Liabilities: $100,000

In the above example, everything but accounts payable are accrued expenses.

Often, accrued expenses must be estimated.

What Is the Difference Between Accrued Expenses and Accounts Payable?

Accrued expenses are expenses a company knows it must pay, but cannot do so because it has not yet been billed for them. The company accounts for these costs anyway so that the management has a better indication of what its total liabilities really are. This will allow the company to make better decisions on how to spend its money.

Accounts payable are debts for which invoices have been received, but have not yet been paid.

Both accrued expenses and accounts payable are accounted for under “Current Liabilities” on a company’s balance sheet.

Once an accrued expense receives an invoice, the amount is moved into accounts payable.

What Is an Example of an Accrued Expense?

Here is an example of when an expense should be accrued or when it should fall under accounts payable.

The Stonemill Company is a bread baking company based out of Fresno, California. It uses organic ingredients in its loaves of bread, which are distributed and sold in 12 states.

In July, one of Stonemill’s machines breaks down. A local repairman comes in to assess the problem, and requests that the company order in a special replacement part from New York. They do so. The part is expressed shipped overnight, and the next day the repairman installs it. Upon completion of the job, the machine works fine. The repairman submits a bill on the spot, and departs.

In this situation:

  • The repairman has submitted a bill. As such, that amount does not need to be accrued. The amount for the repairman’s services should be added to any other unpaid invoice amounts and be included in the total “Accounts Payable” line item on Stonemill’s balance sheet.
  • The part that was shipped has no invoice associated with it as yet. It needs to be accrued. The amount for the part should be added to all other accruals, and be reflected in the “Accrued Expenses” line item total on the balance sheet.

Is an Accrued Expense a Debit or Credit?

Debits and credits are used in a company’s bookkeeping in order for its books to balance. Debits increase asset or expense accounts and decrease liability, revenue or equity accounts. Credits do the reverse.

When recording a transaction, every debit entry must have a corresponding credit entry for the same dollar amount, or vice-versa.

Let’s give an example, using the Stonemill company again.

Stonemill reaches the end of August, and its employees have done work that they have not yet been paid for. The amount of the unpaid wages totals $31,000. This would be considered an accrued expense. As such, Stonemill’s’ bookkeeper would:

Calculate and record utility expense accrual. Sample journal entries.

1. Reasons to accrue for expenses

In accounting, the matching principle states that expenses are to be matched with revenues. In practice this means that all expenses associated with generation of revenues within a month (quarter, year) should be included in the income statement in the same period as the revenues.

Accounting events are based on source documents. For example, receipt of inventory is supported by a packing slip or bill of lading. Accounting would use this document to record the inventory received.

Sometimes source documents are not available when a month is being closed. Examples of such source documents are utility bills not received by the time the month is closed. The reason may be that such utilities have billing cycles different from a calendar month. They may calculate cost of services provided from the 21st of the current month to the 20th of the following month.

Your company, however, still incurred utility expenses in the current month, even though you don’t have a source document to support that. What can you do to match revenues with related expenses in such a case?

You can accrue for such expenses. An accrual (a liability accrual) means recording expenses incurred but unpaid by month (quarter, year) end.

In cases when no source document is available to support the amount of accrual, the accrual can be estimated based on history and other known information.

It is to be noted that not all companies are required to go through this process of accruing for expenses. All depends on individual circumstances of a company or management needs. Large public companies are to carry out such procedures to ensure their financial statements (prepared in accordance with US GAAP or other set of standards, based on accrual accounting) are presented fairly in all material respects. On the other hand, small private companies may not need to do that as they do not present their financials to external parties. In addition, the concept of materiality should be applied to each company. If you are not sure if your company needs to worry about accruals, consult with your accounting advisor / professional or management.

Let’s look at an example and consider two scenarios. One is when a company can wait to receive all utility bills and the other one is when a company can’t wait to get utility bills to close the month.

2. Calculation of utility expense accrual

Suppose Company ABC has a manufacturing facility. Obviously, the facility has utilities connected to it.� The utility companies (electricity, water, etc.) issue their bills (invoices) using the billing cycle from the 21st of the current month to the 20th of the following month. Thus, the current utility bills will not be received until the end of following month.

At the beginning of April 2010, Company ABC�s Accounting Department closes the month of March.

The Accounting Department processes utility bills on a timely basis and pays them within a week after receipt.� Thus, the utility bills for the period from February 21 to March 20 were paid during March.

The utility bills for the period from March 21 to April 20 will not be received until after April 20.� Still, Company ABC used utilities for the full month of March or 31 days. The utilities for the first 20 days were paid during March.� The remaining 11 days (from the 21st to the 31st) remain unpaid as of March 31.

How to determine what the incurred, but unpaid utility expenses for those 11 days were (amount to accrue for)?� There are two possible options, among others (note that an accrual is an estimate, and of course, a company can utilize other methods).

When a company incurs expenses while the payment has not been made, such expenses shall be recorded as accruals. Thus, these accruals are called accrued expenses. Therefore, we can basically define the accrued expenses as the liability which results from the goods or services that have been received; however, the payment has not been made.

In real practice, we often see various expenses incurred and considered as accrued expenses. For example, interest expenses incurred not yet paid, salary expense not yet paid or salary payable, accrued bonus, utility expenses, etc…

Sometimes, the account name for the accrued expenses can be varied in accordance with its nature of the expense. For example, the accrual of salary expense not yet paid is practically called salary payable while the accrual for interest expense is called interest payable.

As mentioned, these expenses, typically, occur very often in real business practice and the accounting treatment, as well as the expense realization, should be properly carried out.

When a company incurs expenses, it creates an obligation in order to make the payment for such expenses. This obligation is the liability that the company possesses and shall be treated and recorded as accrued expenses regardless of payment has not been made.

The accrued expenses account is presented in the Balance Sheet under current liabilities if the payment term is within a twelve-month period; however, if the payment is more than the twelve-month period, such accruals shall be presented as long-term liabilities.

In this article, we cover the journal entry for accrued expenses with examples of the accrued expense transactions.

So let’s get started in the later section below.

Journal Entry for Accrued Expenses

The journal entry for accrued expenses is straightforward. It is part of the adjusting entries in the accounting cycle that each accountant shall be carried out as part of their closing process.

Please note that, at the time of payment, the debit entry is not an expense. It is the offset against the accrued expense (liability) that the company has recorded as an accrual. Therefore, at the time of payment, nothing impacts the income statement.

Example 1

Assume that as of 31 March 20X9, ABC Co has not made the payment on salary expenses of 2 staff for a total of $10,000.

Even though the salary payment has not been made, but ABC Co already incurred the salary expense. Thus, ABC Co shall need to record the accrued salary expense as part of its adjusting entries during the closing process.

On 02 April 20X9, ABC Co made the payment on such salary accrual. Thus, the journal entry to record the payment on the salary payable is as follow:

Example 2

At the end of 31 March 20X9, ABC Co has incurred an interest expense on its bank loan for $500. However, based on the loan amortization schedule, the due date of the payment on both principal and interest is on 03 April 20X9.

Thus, at the end of 31 March 20X9, ABC Co shall need to record the accrued interest expense incurred regardless of payment has not been made.

Conclusion

The accrued expenses journal entry is very important as part of the adjusting entries in the accounting cycle of the closing process. Such accrued expenses are considered as liabilities and shall be presented in the balance sheet as part of the liabilities section.

An accrued expense, also known as accrued liabilities, is an accounting term that refers to an expense that is recognized on the books before it has been paid. The expense is recorded in the accounting period in which it is incurred.

Key Takeaways

  • Accrued expenses are recognized on the books when they are incurred, not when they are paid.
  • Accrual accounting requires more journal entries than simple cash balance accounting.
  • Accrual accounting provides a more accurate financial picture than cash basis accounting.

Understanding Accrued Expenses

Since accrued expenses represent a company’s obligation to make future cash payments, they are shown on a company’s balance sheet as current liabilities. An accrued expense can be an estimate and differ from the supplier’s invoice that will arrive at a later date. Following the accrual method of accounting, expenses are recognized when they are incurred, not necessarily when they are paid.

An example of an accrued expense is when a company purchases supplies from a vendor but has not yet received an invoice for the purchase. Other forms of accrued expenses include interest payments on loans, warranties on products or services received, and taxes—all of which have been incurred or obtained, but for which no invoices have been received nor payments made. Employee commissions, wages, and bonuses are accrued in the period they occur although the actual payment is made in the following period.

When a company accrues (accumulates) expenses, its portion of unpaid bills also accumulates.

Accrual vs. Cash Basis Accounting

Accrual accounting differs from cash basis accounting, which records financial events and transactions only when cash is exchanged—often resulting in the overstatement and understatement of income and account balances.

Although the accrual method of accounting is labor-intensive because it requires extensive journaling, it is a more accurate measure of a company's transactions and events for each period. This more complete picture helps users of financial statements to better understand a company's present financial health and predict its future financial position.

Accrued Expenses vs. Prepaid Expenses

Accrued expenses are the opposite of prepaid expenses. Prepaid expenses are payments made in advance for goods and services that are expected to be provided or used in the future. While accrued expenses represent liabilities, prepaid expenses are recognized as assets on the balance sheet.

Example of Accrued Expense

A company pays its employees' salaries on the first day of the following month for services received in the prior month. So, employees that worked all of November will be paid in December. If on Dec. 31, the company’s income statement recognizes only the salary payments that have been made, the accrued expenses from the employees’ services for December will be omitted.

Because the company actually incurred 12 months’ worth of salary expenses, an adjusting journal entry is recorded at the end of the accounting period for the last month’s expense. The adjusting entry will be dated Dec. 31 and will have a debit to the salary expenses account on the income statement and a credit to the salaries payable account on the balance sheet.

When the company’s accounting department receives the bill for the total amount of salaries due, the accounts payable account is credited. Accounts payable is found in the current liabilities section of the balance sheet and represents the short-term liabilities of a company. After the debt has been paid off, the accounts payable account is debited and the cash account is credited.

How Are Accrued Expenses Accounted for?

An accrued expense, also known as an accrued liability, is an accounting term that refers to an expense that is recognized on the books before it has been paid. The expense is recorded in the accounting period in which it is incurred. Since accrued expenses represent a company's obligation to make future cash payments, they are shown on a company's balance sheet as current liabilities.

What Are Some Examples of Accrued Expenses?

An example of an accrued expense is when a company purchases supplies from a vendor but has not yet received an invoice for the purchase. Other forms of accrued expenses include interest payments on loans, warranties on products or services received, and taxes—all of which have been incurred or obtained, but for which no invoices have been received nor payments made. Employee commissions, wages, and bonuses are accrued in the period they occur although the actual payment is made in the following period.

How Does Accrual Accounting Differ From Cash Basis Accounting?

Accrual accounting measures a company's performance and position by recognizing economic events regardless of when cash transactions occur, whereas cash accounting only records transactions when payment occurs. Accrual accounting presents a more accurate measure of a company's transactions and events for each period. Cash basis accounting often results in the overstatement and understatement of income and account balances.

What Is a Prepaid Expense?

A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement. Unlike conventional expenses, the business will receive something of value from the prepaid expense over the course of several accounting periods.

At the end of an accounting period one of the adjusting entries is to accrue for estimated income tax payable due on the profits of the business.

Suppose a business has an estimated annual income tax expense of 14,000. As the income tax is estimated, a demand for the amount has not yet been received and the expense has not been recorded in the accounting records.

Accrued Income Tax Journal Entry

At the end of the accounting period the business needs to accrue the estimated income tax expense due, the accrued income tax payable journal entry is as follows:

Accrued Income Tax Journal Entry

Account Debit Credit
Income tax expense 14,000
Income tax payable 14,000
Total 14,000 14,000

The Accounting Equation

The Accounting Equation, Assets = Liabilities + Owners Equity means that the total assets of the business are always equal to the total liabilities plus the owners equity of the business. This is true at any time and applies to each transaction. For this transaction the Accounting equation is shown in the following table.

In this case the balance sheet liabilities (income tax payable) has been increased by 14,000, and the income statement has an income tax expense of 14,000. The expense reduces the net income, retained earnings, and therefore owners equity in the business.

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About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

If you’ve never looked at your business’ financial statements before, it might surprise you to find a liability account in your books called “accrued expenses.” How can an expense be a liability? Is it bad that you have accrued expenses? And how do you pay for them?

Here we’ll go over what exactly accrued expenses are, how to account for them using journal entries, and what they mean for your bookkeeping and accounting operation.

What are accrued expenses?

An accrued expense is an expense that has been incurred, but not yet paid for.

There are all kinds of accrued expenses your business might be accumulating without you even knowing it: unpaid vacation pay, unreimbursed employee travel expenses, utilities you’ve used but haven’t been billed for, etc.

Accrued expenses are short-term or current liabilities that you can find on your company’s balance sheet and general ledger. Depending on your accounting system and accountant, they might also be called accrued liabilities or spontaneous liabilities.

But hold on a second: how is it possible to incur an expense without paying for it? The answer is accrual accounting.

Cash basis accounting vs. accrual accounting

You only record accrued expenses in your books if you run your business under the accrual basis of accounting.

If you run your business under cash accounting, you record expenses the moment you pay for them, and you won’t have accrued expenses in your books.

What’s the difference between cash and accrual accounting? It mainly has to do with timing:

  • Cash accounting recognizes revenue and expenses only when money changes hands
  • Accrual accounting recognizes revenue when it’s earned, and expenses when they’re incurred (but not paid)

Why are accrued expenses important?

Recording accrued expenses (as opposed to sticking with cash basis accounting) can have a big impact on the way your business reports its revenues.

For example, let’s say you did all of the following in the same month:

  1. Sent out an invoice for $2,000 for a web design project completed this month
  2. Received a bill for $4,000 in developer fees for work done this month
  3. Sent a $2,000 invoice for a deposit for a project you intent to start the following month
  4. Paid $500 in fees for a bill you received last month
  5. Received $1,000 from a client for a project that was invoiced last month

Using the cash basis method, the profit for this month would be $500 ($1,000 in income minus $500 in fees).

Using the accrual method, you would record a loss of $2,000 for this month ($2,000 in income minus $4,000 in accounts payable).

Examples of accrued expenses

Any expense you record now but plan to pay for at a later date creates an accrued expense account in your books. An example of an accrued expense might include:

  • Bonuses, salaries or wages payable
  • Unused vacation or sick days
  • Cost of future customer warranty payments, returns or repairs
  • Unpaid, accrued interest payable
  • Utilities expenses that won’t be billed until the following month
  • Anything you’ve purchased but haven’t received an invoice for yet

How to record adjusting journal entries for accrued expenses

Let’s say your business, a combination bookshop, record store and taqueria, rents a brand spanking new street-level retail space. You’ve signed a lease where you agreed to pay the landlord $3,000 a month, picked up your keys, and started moving in your equipment. So far so good.

Fast forward to the end of the month (let’s say it’s February), and you still haven’t heard from the landlord about payment. In fact, you’re having trouble getting a hold of them. She won’t pick up the phone or answer her email, and her answering machine says she’s in Cuba.

You look over the lease and realize it doesn’t actually specify how the landlord would like to get paid or where to send the money. March 1st rolls around and there’s still no word from her. It becomes clear that you won’t be able to pay the landlord for the first month of rent until she gets back in touch with you.

However, because you use the accrual basis of accounting, your books will still need to reflect the rent expense. So you make the following adjusting entry in your books:

Account Debit Credit
Rent expense 3,000
Accrued expense 3,000

You now carry $3,000 in accrued expenses on your books, to reflect the $3,000 you owe the landlord.

Now let’s say the landlord gets in touch a week later.

“Sorry” she says, “I’ve been relaxing on the beach all week and completely forgot about this. Mind sending me an e-transfer when you get a chance?”

You agree, she deposits the money into her account, and the rent expense has finally been paid. To close out the accrued expense on your books, you’d make the following journal entry:

Account Debit Credit
Accrued expense 3,000
Cash (etransfer) 3,000

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Any revenue expenditure that has been incurred during a specific period of time (a month, quarter or a year) but has not been paid for is referred to as an accrued expense.

In simpler words, accruals are amount payable against operating expenses. Any revenue expenditure, whether accrued or paid, is reported in the income statement as an operating expense.

However, only accrued expenses are accounted for in the balance sheet as a current liability.

To bridge this gap between the income statement and balance sheet, a statement of cash flow is prepared annually in accordance with IAS 7.

A statement of cash flow is a component of the Annual Financial Statements presented to the shareholders at the Annual General Meeting.

Statement of cash flow:

A cash flow statement elaborates all the cash transactions and reports all the incoming and outgoing cash for a specific period of time, be it a month, quarter or a year. According to IAS 7, it is prepared in a particular order.

First, we need to adjust any working capital changes and operating expenses that are recorded on an accrual basis in the income statement in order to calculate net cash flow from operating activities.

Secondly, we need to calculate the net cash flow from investing activities which includes any investments made during the year or any disposal or purchase of fixed assets.

Lastly, we have to calculate the net cash flow from financing activities which includes acquiring or paying back a loan or debt, interest and dividend paid etc.

The sum of the net cash flow from all three activities is the total net cash flow of the company for the year.

Accounting treatment of accruals:

The financial statements are based on the 5 accounting principles and hence are made on the accrual basis.

One of these principles is the Matching Principle which states that you should match each item of revenue with an item of expense.

As in, all the expenses should be matched to the inventory sold to generate revenue.

This means that you have to report expenses that are incurred during the specific period of time only whether paid or accrued.

Accruals are included in the expense amount on the income statement and reported as a current liability in the balance sheet.

Effect on the statement of cash flow:

In order to prepare the cash flow statement, we adjust the profit before tax with working capital adjustments and operating expenses and accrual is an operating expense payable.

Any increase in accruals shall be added to the profit before tax and any decrease in accruals should be subtracted from the profit before tax.

Example 1:

Assume that a company has an accrued rent expense of $2,000 for the year ended 2019 (2018: $3,000).

As per the matching concept, the decrease in $1,000 of the accrued liability had been recorded in the income statement in any preceding year and has no effect on the income statement for the year ended 2019.

In the balance sheet for the year ended 2019, the current liabilities and the cash or cash equivalents section would be reduced with $1,000.

Now, to bridge the gap between the income statement and balance sheet we will show the decrease of this accrued liability in the cash flow statement since the effect wasn’t shown on the income statement.

Example 2:

A company has an accrued utility expense of $6,000 for the year ended 2019 (2018: $4,000).

As we can see there is an evident increase in the accrued liability of $2,000 which means that the utility expense of the current period has not been paid off and will be paid in the near future.

This indicates that the revenue against which the utility expense had been allocated was earned and received but the payment for the utility expense has not been made resulting in an increase in cash flow.

Conclusion:

Payment of accrued expenses reduces cash flow whereas the increase in accruals decreases the cash flow.

The accrual accounting method requires businesses to report expenses when they are accrued. In many cases, an accrued expense is recorded when a business is invoiced for it. However, in many instances a company using the accrual method of accounting pays for some expenses, such as advertising, in advance – before the business actually has a use for the item. This is called a prepayment. Prepayments are accounted for differently than other expenses. Rather than record the entire amount paid in advance right away, the business must allocate the expense equally among the periods in which a benefit is received for the services purchased.

Step 1

Calculate your total prepaid advertising expense. In general, this is the cash amount you pay to the advertiser when you purchase the ad.

Step 2

Calculate the number of months of advertising your business receives for the amount you paid. If your cost covers only one month of advertising, your expense equals the amount you paid. Record the amount your paid as an expense by debiting your advertising expense account and crediting the amount of cash you paid to the advertiser.

Step 3

Divide the amount you paid by the number of months covered. The result is your monthly advertising expense. When you make adjusting entries to close out your monthly profit and loss statement, debit your “Advertising Expense” account and credit your “Prepaid Advertising” asset account. This adds the accrued expense to your profit and loss statement and reduces the prepayment amount in your asset account.

  • Before you record prepaid expenses in your journal, you must create a prepaid advertising account in your Chart of Accounts. This appears as an asset account on your balance sheet. Create a debit entry to the prepaid advertising account for the amount you paid the advertiser and credit your Cash account in the same amount. This must be performed before you calculate and record your monthly advertising expense.
  • If your ad only runs for one month, you don’t need to calculate your expense for accrual accounting. Since the amount you pay for advertising only covers one month, the amount you paid equals your expense in the same period.

With a background in taxation and financial consulting, Alia Nikolakopulos has over a decade of experience resolving tax and finance issues. She is an IRS Enrolled Agent and has been a writer for these topics since 2010. Nikolakopulos is pursuing Bachelor of Science in accounting at the Metropolitan State University of Denver.